CONSPIRACY TO COMMIT MAIL FRAUD AND WIRE FRAUD
Scott Kohn, Scott Alan Kohn
|Date(s) of Birth Used
||March 28, 1954
|Place of Birth
Scott A. Kohn of Newport, California, and Future Income Payments, LLC (FIP), an entity organized under the laws of Nevada, are charged with conspiracy to engage in mail and wire fraud. According to the indictment, it is alleged that FIP operated a ponzi scheme in which it actively recruited pension holders who were desperate for money, including many veterans of the United States Armed Forces. The pensioners allegedly made monthly payments to FIP in exchange for a lump sum payment or loan. The adjusted annual percentage rate on these transactions often exceeded 100%. FIP then solicited investors to purchase "structured cash flows," which were the pensioners' monthly pension payments. FIP promised the investors a rate of return between 6.5% and 8%. It took active steps to conceal from the investors the usurious nature of its transactions with the pension holders. FIP diverted new investor funds flowing into the business to fund payments to earlier investors in order to keep the scheme operational. When FIP ceased doing business in early 2018, investors were owed approximately $300 million. The scheme alleged in the indictment victimized over 2,600 individuals.
On May 12, 2019, a federal arrest warrant was issued by the United States District Court for the District of South Carolina after Kohn was charged with conspiracy to commit wire fraud and mail fraud.